Plan has Nags Head assessing itself for sand
Nags Head is ready to declare itself an affected property owner and move ahead with a petition drive asking oceanfront taxpayers to agree to a special assessment that will help pay to pump sand onto the beach.
Reactions to the assessment were mixed at a public hearing Wednesday and several questions were raised, including how the town plans to fund maintenance of the beach after the initial 10-mile nourishment project.
The assessment calls for oceanfront property owners, including the town, to be assessed 98 cents per $100 of assessed value spread out over five years. That comes out to a little less than 20 cents a year.
Town resources will have to go into the complex petition drive. By state law, property owners must volunteer to be assessed and initiate the petition drive. Because of its beach accesses, Nags Head officials consider the town an oceanfront property owner that can legally become active in the campaign and assess itself.
Town Manager Cliff Ogburn said the town’s share of the assessment would come out to about $64,000 a year on $32.8 million worth of property.
An owner, and sometimes multiple owners, will have to be identified for each property and signatures will have to be validated. At least 50 percent of the owners would need to agree to the assessment and they must represent 66 percent of the total value of the property to be assessed.
The assessment would affect property owners east of N.C 12 and Old Oregon Inlet Road. Some of them are not directly on the oceanfront.
The $25 million, state-owned Jennette’s Pier is among those eligible for the assessment. If the state Secretary of Administration refuses to consent to the assessment, the town could appeal to the Council of State.
The town’s website now has a calculator for determining the amount of an assessment. It can find a property by address or parcel number. link »
Town Attorney John Leidy said that under the town’s form of government, the Board of Commissioners has the authority to decide if Nags Head will participate in the petition drive and assess itself. But he recommended that the board hold a hearing to weigh public opinion on the matter.
The aim of the assessment is to raise $10 million to help with debt service on an $18 million loan. Another $10 million would come from $2 million a year for five years provided by an additional 1 percent of the occupancy tax, which the county still needs to approve. The $18 million balance for the project would come from the county’s Shoreline Management Fund, which has been built up by an existing 1 percent of the occupancy tax.
Commissioners said they would have to develop a revenue stream for maintenance of the project and did not rule out the possibility that a portion of that cost could come from ad valorem property taxes. Maintenance funding also could come from the town’s share of occupancy tax revenues not dedicated to beach nourishment, which is $1.4 million to $1.6 million a year.
At the end of the board’s meeting Wednesday, Mayor Pro Tem Wayne Gray said that beach nourishment will have a far-reaching effect and “one day will go into the ad valorem tax.”
That is a sensitive area for town leaders. Nags Head voters turned down a bond referendum under which all taxpayers would have covered some of the cost over a five-year period with higher property taxes. Since then, the town has looked for other ways to finance the project and avoid having to use property tax revenue to fund beach nourishment.
One early plan was to assess oceanfront owners for maintenance, but that assumed the town would get more money from the county for the initial nourishment project. The town has since turned to the assessment concept to cover that shortfall.
The question of maintenance grew out of concerns expressed by at least one property owner at the public hearing that the Federal Emergency Management Agency requires a re-nourishment plan, including how it will be financed, before it will cover loss of sand from nourishment after a named storm.
Mayor Bob Oakes said that the town first needed to nail down the initial $36 million project. Oakes and Commissioner Renee Cahoon said that the town would not need to have the money for re-nourishment on hand, only a plan for raising it.
The town already has a plan for monitoring the beach to see how much sand is lost or gained by natural ebb and flow, which is another FEMA requirement. Only the sand lost in a named storm would be replaced by FEMA.
See what people are saying:
Join the discussion:
Bill Holt says:
Hmmmm… Well now when are the assessments based on… the County’s present over assessment of the value of Ocean Front and properties everywhere? New assessments are due soon and… ??? begs a question for a homeowner who cannot any longer get 2.5 million… likely a million off that in our market (or more) and plenty still headed towards the Distressed Status?? Was this talked about at the Public Meeting?
Jim Wright says:
“Town commissioners acknowledged that they would have to develop a “revenue stream” for maintenance of the project and did not rule out the possibility that a portion of that cost could come from ad valorem property taxes.”
And fellow Nags Head locals, THERE WE HAVE IT.
That is how the 900 out of area oceanfront homeowners (of 1100 OF homes) will get us to pay for eternal sand in front of their rental homes.
Bill Holt says:
Just did a quick search… Ocean Front Sales in 2010 in Nags Head. Sales are well below assessed values. One was $192,200 less than assessment. One was $217,200 less. The third I checked was scary… It was $394,100 Less than Assessment Value. @ $.20 per 100 – That’s a fairly good size amount of money? Don’t you think? And are Ocean Fronts the only one’s that benefit from Renourishment? Hmmmmm
Ray says:
I smell rotten fish and a class action lawsuit before this is all over…
Gail M. Jones says:
Bill Holt…My guess would be anyone that ever goes to the beach would benefit. People with houses on the other side of the Beach Road would benefit. You name it ..the whole community will benefit. If it fails, then no one can say we didn’t give it a good try….”To be a success, never give in and never give up.” A quote I pass on to my grandchildren every chance I get.
Beachgirl says:
It doesn’t matter whether the property has a more current assessed value or not-Nags Head has to raise $10 million. If the town uses a new, lower assessment, then they will have to raise the assessment form 98 cents to somehting highter to still make the $10 million.
Rob Morris says:
We’re told that the assessment at the time it starts will be used for all five years. The 2013 revaluation wouldn’t change it.
Rob
Bob O says:
Although the tax value is more than the market value right now, the property values in the special assessment district are still in proportion to each other. A potential future special assessment for re-nourishment would use property values would hopefully improve by the time of the next re-valuation.
Jim Wright, although ad valorem was not ruled out as a revenue source, it won’t be one that I support, and I don’t think it is likely.
Ken says:
Is it true that this special assessment will raise the tax rate from 15.5 cents per $100 to 35.5 cents per $100? IN other words, is it true that this will raise the taxes of those affected by 129%? It is very unfair that only a portion of the property owners in Nags Head may be asked to take on this burden. The beach benefits everyone, not just ocean front owners. Think about how many businesses on the west side of Highway 12 benefit from all the people staying in those houses…and how many people are employed by those businesses. Maybe the burden should not be equal, but EVERYONE should take on a piece of the price tag!
ekim says:
I love how you people have no problem spending an counting some one else’s money on something that’s not going to WORK!
Jim says:
This is what we used to call a Fool’s Bet. Why did the last two attempts fail? The engineer said “Incompatible sand.” Show us those numbers. Show us that historical evidence. Show anything other than your guess why it failed. Do you have examples where you came back with better sand later and something worked?
The town jumped on that excuse and is driving ahead with only that hope. There might have been 1,000 reasons the other sand dumpings failed, but no one asks the questions.
Now, there’s no proof the new sand, or any sand on the planet, would work, or would be “compatible.”
This is the biggest fool’s bet in our history. I cannot believe anyone, anyone at all, would believe that engineer when he says “I can do better this time.” He has no proof that he ever has done better in our conditions.
Bob Samuels says:
Ekim & Jim have it right! Tax dollars washed away by the next hurricane or northeaster. Talk about waste and foolish decisions. A few years ago, a harder sand was trucked onto the beaches in Nags Head. Although it was an eyesore and created some obstacles to the beach for awhile, it served as an excellent buffer to the dune lines (most important aspect regarding stable beaches, hence the problem in S Nags Head) for almost a year. The cost of this project would be much less to implement (every other year) and it has a far less significant impact on the environment (fishing, surfing, animals, etc.)
I’ve got a better idea of what to do with the money saved from this scenario. Dare County or the Town of Nags Head should buy the Dowdy’s lot ($4.5 mil asking price) and build a pool and small park. Charge county/town full-time residents a reasonable annual fee and higher daily/weekly rates for visitors. Creation of local jobs (some permanant, most seasonal), a safe and healthy place for kids/teens as well as adults to hang out and exercise, AND, a refuge to escape to during the oppressively hot summer days when the ocean temperatures are hovering around 60 degrees and the water is full of jellyfish!
Bob O says:
Bob S., I think you’re talking about the FEMA emergency berm. It was much smaller grain size, so packed harder, formed a sharper, almost vertical angle of repose. Nothing on the beach, just a berm designed to be temporary, a quick $5 million bandaid. It was definitely temporary, I don’t think it was all finished before part had washed away. Maybe parts lasted 18 months-2 years. This was the kind of emergency response project, paid for 100% by the feds, that tends to happen after a catastrophe.
The Nags Head project actually builds a beach, not dunes, by adding offshore, compatible size sand to the beach system, pushing the equilibrium point some amount to the east. I think we have a far better chance of success than a trucked in sand/silt berm.
The folks that keep referring to trying nourishment 2 times before – it just ain’t so. I guess you mean a FEMA berm and a 1/2 mile disposal project – just not enough sand or length for a viable project, no engineering, no measurement (to my knowledge). We’re basing this project on ten years worth of observation on erosion amounts and rates, and it will be measured and tracked start to finish. No one has done this in our location and conditions before, so no one “knows” exactly what will happen, whether they say they know it will work, or whether they say they know it won’t work.
I think Dowdy’s would be wonderful public open space, in support of the elementary school next door, the regional Beach Access at Bonnett Street, and the YMCA across the street. I don’t think we should duplicate the Y facilities though. They have a great “Open Doors” program, and work with all the residents of Dare County to be accessible.
Barbara says:
WOW! This is just amazing arrogance on sooo many levels. This is nothing more then a “clever” (if barely legal) way for the Town to pass almost 10% of the BN costs onto EVERY property owner in Nags Head. So much for the Oceanfront paying! No wonder most residents do not embrace BN or respect the elected leaders in NH? This is just another shell game to pass the buck onto everyone BUT who should pay. And this tax will be every year, not just a one-time tax. If you own property in NH you should be outraged that the Town has proposed this scheme. Amazing!
Mabel Choate says:
Oakes and Commissioner Renee Cahoon said that the town would not need to have the money for re-nourishment on hand, only a plan for raising it. WRONG!!! Not only do you need the money, but you also have to maintain the beach.
According to FEMA rules, a beach is considered eligible for permanent repair if it is an improved beach and has been routinely maintained prior to the disaster. A beach is considered to be an “improved beach” if the following criteria apply:
1) The beach was constructed by the placement of sand to a designed elevation, width, grain size, and slope; and
2) The beach has been maintained in accordance with a maintenance program involving the periodic re-nourishment of sand at least every 5 years.
Emerald Isle may have circumvented criteria 2) in 2003, but that was well before the economic downturn.
Rob Morris says:
This might address the FEMA question:
http://www.fema.gov/pdf/government/grant/pa/9580_8.pdf
Bob O says:
Ms. Choate,
Other than an annual monitoring program, what do you think should be in place for the first 5 years of the project?
Barbara, the special assessment that would go with the beach accesses represents about 1/5 of one penny on the Town tax rate. The Board has had discussion about including them in the special assessment in recognition that the whole town has benefits, and a nourishment project would help protect these accesses. A decision has not been reached. You’ll note some other posts before you where the oceanfront property owners are concerned that they are bearing the whole cost. Since everybody’s unhappy, it may be about the right proportion.
Darren says:
Wow, Mr. Oakes said in that last post: Since everybody’s unhappy, it may be about the right proportion. ??????
I’d be shocked that anyone in Nags Head would be unhappy! At all!
Most of this will be paid by renters in other towns. You guys won a huge score with that move. Pat Mr. Oakes on the back! Stop arguing about your pennies and come up with the 10 mil, NH residents! You already won!
Sam says:
There is little doubt the 1,000+ property owners will incur the largest portion of this fee….the small percentage that is being “spread out” to the other taxpayers via the portion the town must put in to cover their share is “budget dust.” The 1,000+ property owners east of highway 12 will actually pay their special appraisal, and part of the town’s share, too. Talk about double dipping.
The burden is too great on too few. Everyone in town benefits from the beach. I propose a third of the money come from those outside the area east of rt 12, and the other two thirds come from the 1,000 owners east of rt 12. That seems like a fair balance….
Barbara says:
Sorry Mr. Oakes but I do not agree with you, and I also believe most of your town’s residents and property owners will also disagree with you. Seriously, why not put it to vote? A fair, across the town vote. 1 single vote per property (this way non-resident prop. owners have a say too. No Town assessments involved, just property owners. East side, west side, south and north. You won’t put it to vote because you know the town will not agree if asked. Ask the owners what they feel they should pay.
Darren says:
Sam, everyone, last time you ASKED the people who are not on the beach to pay, you got SMOKED in the vote. Your own citizens want nothing to do with the beach nourishment, and saying they benefit is blabber. They feel they benefit enough the way it is now.
If you open this up to taxing everyone in town, you will get crushed again as the TRUE OPINION on nourishment will be in the talks. If you open it up, then you have to let them vote too, and you will lose again.
Oceanfronters, just pay the bill already! Oakes is serving you up a fat fastball to hit out of the park! Thank him!
The locals here (and the commissioners know this) want nothing to do with this sand project. Almost all of them think it will fail immediately.
The officials have done everything they can to keep it from a public vote this time, every snakey move in the book, and they pulled it off for you. Quit whining that you have to pay. Just pay.
Sam says:
Darren:
I am not against renourishment. And I think it’s good that a large segment of the cost will be covered by revenue outside the taxbase. But politicians should learn to listen to – not run from – the opinions of those who elect them. They should educate on issues they believe are important, and this is the perfect example. Anyone who does not believe the people outside the area east of Rt 12 are economic beneficiaries of the revenue those properties bring into town are misinformed and naive. But if they do believe that, they do deserve to have their representatives listen to them.
On another note, the homes on the most stable portion of the beach – those that will benefit least from the renourishment – have significantly higher assessment values than those on the weakest parts of the beach. The outcome of that is those that did their homework and bought/built on more stable parts of the beach will be asked to finance a renourishment that will most benefit those that bought/built on weaker parts. At a macro level, that is the problem with so many of the “government fixes” we see today: those that planned, saved, studied, and bought within their means get nothing EXCEPT for the bill to bail out those who did not.
Bottom line – I just want the all the property owners in Nags Head to pay something toward what is a defacto public works project.
Darren says:
Sam, you’re right on every point. No arguments. But the locals do not want this. That is just a fact. 60-80% against, every time. You try to charge them for the sand? It all goes away.
Better to take the deal the way it is than to let the “voting public” express the “will of the majority”, again, and stop this thing cold.
Jake says:
Is this a comedy sketch of some kind? Every time it looks like it is a go, it is a stop. Every time it looks impossible, someone figures out another way to weasel it through. You guys should write a movie. I hope to God someone out there is making a documentary film.
Gail M. Jones says:
My house was DEMOLISHED this week and I still, strongly support the Town’s Re-NOURISHMENT program and I’m willing to pay the assessment on my property. Not sure what that will be, as I’m a “Wash Out” for now. I’m surprised by some that keep crying about paying to support the Town’s only INDUSTRY ….the BEACH.
The comments by one person are so self centered. Either they own too much property and can’t afford to stay in the game or she is really angry that she will have to pay a small share for enjoying the beach, while wanting the oceanfront homeowners to solely fund the project for her and everyone’s benefit. Stop thinking as an individual, but more like a person involved in saving this community.
Joe says:
Just remember mother nature is watching and waiting….
Kim Savage says:
I’ve commented before…if you read the comments it’s easy to see why Nags Head is in the place they are, with a washed out beach, and a bad economy…more homes listed as foreclosures and short sales than re-sales, and property values plummeting thousands below assessments. This is a small fishing town with uneducated voters that don’t want to help the rich man save his “rental house”. They are all missing the big picture…The Outer Banks industy is resort tourism based on its BEACHES…nothing more! If you don’t save your beaches…the people will stop coming and your restaurants, stores, gas stations, and all the other businesses will all fold! Common Sense is really lacking down there…such a shame too! Look at what VA Beach, Wrightsville, and all the other resort towns that planned ahead and did the beach nourishment years ago have accomplished…they still have beautiful wide beaches, the tourists keep coming, and even in a bad economy their property values have held strong!
John says:
Why is it that so many of you people think that this will not work? There are lots of examples of this working, the Port of Los Angles is built on dredged sand, same for Tokyo Airport, and that huge Hotel in Dubai, not to mention all the NC & SC beaches that have had successful renourishment. Opinions seems to be more based on greed than anything…”I don’t want to pay and money to maintain the beach, but I want to enjoy it and or making a living off people who enjoy it”. Very self serving perspective many of you have.
Jake says:
Three things John, the currents, the storms, and history. Ports and airports aren’t where we are.
1. We sit at the confluence of the Labrador current (from the north) and the Gulf Stream. Constant, active flows year round.
2. We are directly exposed to Nor’ easters, which bring heavy swells and storm surges that last days at a time. Hurricanes don’t really worry us, it’s these that wipe out our sand and dunes. Visit for a winter sometime. It’s quite a show.
3. We’ve piled sand down there twice in the last 8 years, each time, it has washed away almost before the project was complete.
Gail M. Jones says:
Jake…..Who is “WE”….Twice in 8 years??…I remember the berm and I don’t recall that being a TOWN project. A pile of sand is not the answer…..
Jody C. says:
I own three rental houses in Nags Head. I own three businesses in Nags Head. Plus I own my home. I have three stores on Atlantic Ave. in Va. Beach. I have lived in Nags Head for 25 years. I’m not boasting. I’m showing that I myself would take a bigger hit on a tax increase. And, I hate what I pay now. I used to live a block from the ocean in Va. Beach where I surfed since I was seven years old. My grandparents grew up on the beach, and my parents grew up on the beach. I used to walk down to the beach via the V.B boardwalk. Taking 7 to 8 concrete steps down to the beach. Then another 100 feet to the waters edge. That’s about what we have here now. I used to walk under the 16th street pier with another 6 foot above my head to the top. After they completed their beach nourishment I went to see how it had changed. I was amazed. It was only one concrete step down to the beach, and close to 500 ft to the waters edge. Almost to far. The pier had to put up barbed wire, because people were braking in. The reason was that sand was right up to the pier gift shop and the restaurant.
When they nourished VB our store sales along Atlantic Ave. increased almost 40%. Where our OBX stores have had only modest increases. Why? More room to put an umbrella, a beach chair, throw a frisbee, fly a kite, just to name a few retail items sold. Lot’s of great memories that bring people back year after year. One big sandy playground. News crews wouldn’t scare away thousands of tourist for weeks, because they showed a house in South Nags Head falling in the ocean. IMPACT? Enormous! Business loss=tax loss, verses Business gain=tax gain=money for renourishment=no more sand tax. That’s our beach, and that’s our business.
P.S. The sand in VB…it’s still there, and so is the business.